The decline in the eurozone's industrial production accelerated from -5.1% to -6.9%, higher than the expected -6.2%. However, it did not lead to any noticeable movements, similar to the market's reaction to the UK inflation data, which slowed from 6.7% to 4.6%, instead of the forecast of 4.9%.
Although the slowdown in UK consumer prices indicated the imminent easing of the Bank of England's monetary policy, market players waited for US statistics, as its forecasts had a negative tone. However, the data showed a slowdown in retail sales from 4.1% to 2.5%, better than the expected 3.8% to 2.1%. An upward revision of previous results also came out, triggering a full-fledged rebound.
Most likely, dollar will continue rising, and nothing will affect it even the upcoming jobless claims report from the US. The data will not affect the situation, even if the forecasts say the total number of claims will increase by 8,000.
EUR/USD pulled back due to its overbought condition. The volume of long positions decreased near the level of 1.0900, leading to a slowdown in the upward cycle. In the case of further decline, euro will drop at least to the level of 1.0800. Subsequent movement will depend on the price behavior near this level, where traders will consider two possible scenarios: a rebound or a breakthrough.
A similar picture can be seen in GBP/USD. After reaching the resistance level of 1.2500, a reduction in the volume of long positions occurred, leading to a pullback. At the moment, the move already amounted to over 100 pips, so if pound declines further, the price will hit the level of 1.2350.